Your daily financial habits have an impact on your business’ financial health and ultimately affect your business’ growth. Sound financial habits are vital for the survival and subsequent growth of the business thereof. In addition, adopting sound financial habits enhances financial management in the sense that it puts a business in a better position to utilize the business’ financial resources effectively, boosts long-term financial stability, leads to achievement of set commitments and goals, for your business, as well as setting up structures that are crucial to the growth and success of the business.
A business that implements effective strategies when it comes to the planning, controlling and monitoring of financial resources in a business is likely to foster good financial habits therein. To this end therefore, it is important that business owners determine appropriate structures, policies, and strategies that are likely to influence financial habits positively.
Here is an overview of potentially good financial habits for your business.
Part 1 – Financial Planning
1 Develop a small business structure
2 Consider deferring or reducing taxes
3 Ensure your financial records are updated
4 Setup internal financial protocols and controls for your business
5 Align your spending to your financial goals
6 Monitor and track your business’ financial progress
Part 2 – Managing your Budget
7 Create a workable budget
8 Constantly monitor your income, expenses, and cash flow
9 Evaluate financing options based on your budget
10 Track business spending accurately
11 Always maintain funds in your cash reserves
Part 3 – Managing Investments
12 Diversify your investment portfolio
13 Consider investing cash inflows
14 Maintain a cash cushion for rainy days
Part 4 – Good Business Practices
15 Ensure your accounting records are up to date
16 Check that your overheads are controlled
17 Address arising issues swiftly
18 Understand your cash flow
19 Adopt good book-keeping techniques
20 Analyze your P&L statements to determine your business position
21 Update your balance sheet regularly
22 Monitor your inventory closely
Related Information Products –
IM Checklist – Online Marketing Checklists With PLR
All-in-One SEO Tools Suite – Improve SEO for Your Online Business